Support at Home: What it Means for You

Last year, the Australian Government announced that long-awaited changes to Home Care would commence on July 1st, 2025. The new program, which changes the name from Home Care to “Support at Home”, will involve progressive changes over the next 2-3 years, starting from July 1st.

There are a range of changes that will be made with the Support at Home program. To help you understand how the changes will affect you as they are announced, Aunty Grace has put together a series of updates leading up to the July 1 commencement date.

This first instalment of updates will talk about changes to contributions, the switch from monthly to quarterly budgets, and the new package levels under Support at Home.

Contributions: Capped at what you currently pay

What the Government has said:

The current Income-Tested Care Fee will be replaced by a per-service client contribution. Contributions will be a set percentage of the service charge and will vary by the type of service provided (i.e. clinical vs everyday assistance), as well as the client’s income and assets.

What this means:

Under the existing Home Care Package (HCP) program, you completed an income test to determine your contribution (if any) and were assigned an Income-Tested Care Fee (ITCF). This was set at $0 for full pensioners. Under Support at Home, each individual service appointment will be assigned a contribution percentage.

However, the good news is that existing HCP clients will have total contributions capped at the same dollar amount as your current ITCF. This means that if you currently pay no ITCF contribution, you will continue to have no contributions under Support at Home, regardless of the service.

Bottom Line:

No change for you. Any out-of-pocket amount you pay under Support at Home will be capped at what you are currently paying (if anything). Where contributions under Support at Home are less than your current contributions, you save the difference.

Quarterly Budgets: Use it or lose it

What the Government has said:

Each client will receive their funds as a quarterly amount. You will work with your Provider to choose how to spend those funds each quarter. If the spend for the quarter is less than the government subsidy, clients will be able to roll over the greater of $1,000 or 10% of your quarterly budget to be used at a later date.

What this means:

Under the current HCP program your subsidy is received monthly. Any funding that is not spent within the month rolls over indefinitely in your Commonwealth Account with Services Australia. Under Support at Home, your funding will be received quarterly, available at the start of each quarter.

However, at the end of each quarter the maximum amount of unspent funds that can be rolled over is the greater of $1,000 or 10% of the quarter subsidy. Unlike today, after 1 July 2025 you cannot continue to accumulate unspent funds in your Commonwealth Account.

Fortunately, under the ‘grandfathering’ arrangements set up by government, you will retain any existing unspent HCP funds on 30 June 2025 when the new program commences on 1 July 2025.

Bottom Line:

Australian Government funding will be made available for your use quarterly instead of monthly. However, unlike today, from 1 July 2025 if you don’t use all of your subsidy only a small portion can be rolled over to future quarters (the greater of $1,000 or 10%). So, it’s important that each and every quarter you use all of your available government funding on services that you require in order to receive the full benefit!

Importantly, you can still use your existing unspent HCP funds as a surplus each quarter for additional or larger expenses.

New Package Levels: More Funding Opportunities

What the Government has said:

On 1 July 2025, the current HCP program will shift from 4 package levels to a new 8-level system, with an additional two funding classifications for restorative care and end-of-life care. The highest classifications level (level 8) will include a budget of approximately $78,000 per year, a substantial increase on the current highest HCP level 4 ($62,076).

What this means:

The new Support at Home program will have 8 package levels, as opposed the current 4 levels. However, if you are an existing HCP client, you will retain your current package level (1 to 4) until you request a package upgrade and are reassessed and approved by My Aged Care.

On approval of a higher package level you will receive additional funding but your choice of services may then be limited to those listed on your government provided Support Plan, determined at time of assessment.

Bottom Line:

No change from 1 July. The new package levels will only apply when you obtain a package upgrade (via a reassessment). This upgrade will give you access to additional government subsidy but will also stipulate the services you can obtain in the government prepared Support Plan.

Aunty Grace provides a large range of services that support and enable you to lead your best life! Getting help doesn’t have to mean losing your independence. A dedicated team of carers and support staff take the time to understand you and your unique life, tailoring a care plan designed to suit you.

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